Slide 1: Fourth Quarter and Full Year 2016 Earnings Presentation
Fourth Quarter and Full Year 2016 Earnings Presentation February 28, 2017
Slide 2: Forward-Looking Statement
Forward-Looking Statement Forward-Looking Statement Any "forward-looking" statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, contained herein, including those relating to the Company’s business, financial condition or f
Slide 3: Agenda
Agenda • Opening Remarks • Financial Highlights • Segment Highlights • Outlook and Summary • Questions and Answers • Appendix Presenters Include: • Thomas Amato, President and Chief Executive Officer • Robert Zalupski, Chief Financial Officer • Sherry Lauderback, Vice President, Investor Relations 3
Slide 4: Opening Remarks
Ss TriMias Opening Remarks
Slide 5: 2016…A Transitional Year for TriMas
Opening Remarks 2016…A Transitional Year for TriMas • New leadership in Q3, followed by a renewed focus to drive results • Many changes were implemented: - Implemented a new operating and financial model – concentrating on current and prospective challenges and opportunities - Leveraged data to driv
Slide 6: Introduced New TriMas Business Model (TBM) – Some Examples
Opening Remarks Introduced New TriMas Business Model (TBM) – Some Examples TBM Focus • Example #1: Plant challenged with past due Results- orders Driven • Environmental, Health and Safety Data-driven analysis to identify and remediate root causes • Key Actions: Visual management on factory floor
Slide 7: Financial Highlights
Ss TriMias Financial Highlights
Slide 8: Fourth Quarter Summary
Fourth Quarter Summary (Unaudited, dollars in millions, except per share amounts) (from continuing operations) Q4 2016 Q4 2015 Variance Net Sales $185.5 $192.8 (3.8%) Operating Loss ($96.9) ($68.0) n/m Excluding Special Items, Operating Profit would have been: $19.0 $22.1 (13.7%) Excluding Special I
Slide 9: Fourth Quarter Summary
Fourth Quarter Summary (Unaudited, dollars in millions) (from continuing operations) Q4 2016 Q4 2015 Variance (1) Free Cash Flow $33.2 $41.7 ($8.5) Capital Expenditures $8.9 $8.3 $0.6 Inventories $160.5 $167.4 ($6.9) Total Debt $374.7 $419.6 ($45.0) Cash $20.7 $19.5 $1.3 Net Debt $353.9 $400.2 ($46.
Slide 10: Full Year 2016 Summary
Full Year 2016 Summary (Unaudited, dollars in millions, except per share amounts) (from continuing operations) YTD 2016 YTD 2015 Variance Net Sales $794.0 $864.0 (8.1%) Operating Loss ($44.0) ($4.3) n/m Excluding Special Items, Operating Profit would have b een: $94.7 $101.7 (6.9%) Excluding Special
Slide 11: Segment Highlights
Ss TriMias Segment Highlights
Slide 12: Packaging Segment
Packaging Segment (Unaudited, dollars in millions) Financial Summary Q4 2016 Q4 2015 Variance Quarterly Comments Sales $82.8 $77.8 6.4% • Sales increased 9.7% on a constant currency basis Operating Profit, excluding • Continued to drive and gain traction on sales by focusing $20.4 $19.4 4.8% Special
Slide 13: Aerospace Segment
Aerospace Segment (Unaudited, dollars in millions) Financial Summary Q4 2016 Q4 2015 Variance Quarterly Comments Sales $42.9 $42.1 1.8% • Sales increased slightly due to the acquisition of a machined components facility in November 2015 Operating Profit, excluding Special Items $1.3 $6.8 -80.5% • Pr
Slide 14: Aerospace Segment – Recovery Update
Aerospace Segment – Recovery Update Fasteners (approximately 85% of Aerospace segment sales) • Improved operational performance at Commerce, California plant - Manufacturing environment stabilizing; key performance indicators demonstrating progress - Continued strong order intake provides solid dema
Slide 15: Energy Segment
Energy Segment (Unaudited, dollars in millions) Financial Summary Q4 2016 Q4 2015 Variance Quarterly Comments Sales $36.1 $40.5 -10.9% • Sales decreased due to reduced demand in oil & gas end markets and de-emphasizing certain Operating Profit (Loss), underperforming regions $1.0 ($2.3) n/m excludin
Slide 16: Engineered Components Segment
Engineered Components Segment (Unaudited, dollars in millions) Financial Summary Q4 2016 Q4 2015 Variance Quarterly Comments • Sales declined due to softer industrial end markets, Sales $23.8 $32.3 -26.5% customer consolidation, and continued low oil prices and Operating Profit, excluding related re
Slide 17: Outlook and Summary
Ss TriMias Outlook and Summary
Slide 18: FY 2017 Segment Assumptions
FY 2017 Segment Assumptions From Continuing Operations Operating Profit Margin Segment Sales(1) (excl. Special Items) Full Year 2017 Commentary • Organic growth driven primarily by anticipated ramp of customers’ new products Packaging 2% – 4% 23% – 24% • Sales impact related to unfavorable currency
Slide 19: FY 2017 Outlook
FY 2017 Outlook Full Year Outlook From Continuing Operations (as of 2/28/17) Sales Growth 2% – 4% Earnings Per Share, diluted $1.35 – $1.45 Free Cash Flow(1) > 100% of net income Note: All of the figures on this slide exclude any current and future Special Items. (1) Free Cash Flow is defined as Net
Slide 20: FY 2017 Additional Assumptions
FY 2017 Additional Assumptions From Continuing Operations Full Year Outlook (as of 2/28/17) Interest Expense $13 – $15 million Capital Expenditures ~ 4% of sales Tax Rate 30% – 32% Corporate Cash Expense ~ $22 million Non-Cash Stock Compensation ~ $7 million Note: All of the figures and comments on
Slide 21: 2017 Near-Term Focus
2017 Near-Term Focus • Operate under the new TriMas Business Model, with a nearer-term focus on: - Driving growth in the Packaging and Engineered Components segments - Continuing to execute turnaround plans in the Energy and Aerospace segments • Relentless focus on managing cash flow and optimizing
Slide 22: Closing Comments
Closing Comments Well-established brands with leading market positions in niche markets Majority of products with high barriers to entry through production innovation or customer qualifications Strong cash flow with options to drive shareholder value Potential to unlock value through focus o
Slide 23: Questions and Answers
Ss TriMias Questions and Answers
Slide 24: Appendix
Ss TriMias
Slide 25: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (Dollars in thousands) December 31, December 31, 2016 2015 Assets Current assets: Cash and cash equivalents............................................... $ 20,710 $ 19,450 Receivables, net.............................................................. 111,570 121
Slide 26: Consolidated Statement of Operations
Consolidated Statement of Operations (Unaudited, dollars in thousands, except for per share amounts) Three months ended Twelve months ended December 31, December 31, 2016 2015 2016 2015 Net sales......................................................................................... $ 185,530 $ 192
Slide 27: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (Unaudited, dollars in thousands) Year ended December 31, 2016 2015 Cash Flows from Operating Activities: Net loss.......................................................................................................................... $ (39,800) $ (33,400) Loss
Slide 28: Company & Segment Financial Information
Company & Segment Financial Information (Unaudited, dollars in thousands, from continuing operations) Three months ended Twelve months ended December 31, December 31, 2016 2015 2016 2015 Packaging Net sales..............................................................................................
Slide 29: Segment Performance Summary
Segment Performance Summary (Unaudited, dollars in millions) Sales Operating Profit Margin (excluding Special Items) Q4 Q3 Q4 FY FY Q4 Q3 Q4 FY FY 2016 2016 2015 2016 2015 2016 2016 2015 2016 2015 Packaging $82.8 $90.3 $77.8 $341.3 $334.3 Packaging 24.6% 24.1% 25.0% 24.1% 24.0% Aerospace $42.9 $47.4
Slide 30: Additional Information Regarding Special Items
Additional Information Regarding Special Items (Unaudited, dollars in thousands, except for per share amounts) Three months ended Twelve months ended December 31, December 31, 2016 2015 2016 2015 Loss from continuing operations, as reported............................................................
Slide 31: Additional Information Regarding Special Items
Additional Information Regarding Special Items (Unaudited, dollars in thousands) Three months ended December 31, 2016 2015 Excluding Excluding As reported Special Items Special Items As reported Special Items Special Items Net cash provided by operating activities of continuing operations...........
Slide 32: Current Debt Structure
Current Debt Structure (Unaudited, dollars in thousands) December 31, December 31, 2016 2015 Cash and Cash Equivalents……………………………..………………… $ 20,710 $ 19,450 Credit Agreement……………………………………….. 333,720 371,820 Receivables facility and other………………………………..45,650 53,860 Debt issuance costs…………………………………… (
Slide 33: LTM Bank EBITDA
LTM Bank EBITDA (Unaudited, dollars in thousands) Net loss for the year ended December 31, 2016........................................ $ (39,800) Interest expense.................................................................................. 13,720 Depreciation and amortization..................